Earlier this year, AT&T’s Cingular division and Travelocity both pledged not to advertise anymore via adware–programs that slip onto PCs and inject ads into a user’s browser. Verizon took a stance against computer invaders when it became a sponsor of an antispyware initiative. Yet, in March, ads from all three companies were being distributed through adware.

This settlement marks the first time the advertisers have been held responsible for how their ads were delivered. “Advertisers can no longer insulate themselves from liability by turning a blind eye to how their advertisements are delivered, or by placing ads through intermediaries, such as media buyers,” a statement from the New York Attorney General’s Office said. “The settlement calls for Priceline.com, Travelocity and Cingular, the wireless unit of AT&T, to pay New York $35,000, $30,000 and $35,000, respectively, to cover penalties and investigatory costs.” Is $35,000 enough to make a company think twice? —MEGHANN MARCO

Just when we think that MySpace couldn’t sink any lower in our esteems unless a gigantic bottomless pit opened up beneath the corporate headquarters and the tentacles of Cthulhu him/her/itself coiled around it to drag it into the chthonic pit… MySpace starts infecting users with spyware.

Starting in August 2004, Ancheta turned to a new, more lucrative method to profit from his botnets, prosecutors said. Working with a juvenile in Boca Raton, Fla., whom prosecutors identified by his Internet nickname “SoBe,” Ancheta infected more than 400,000 computers.